Quiz 3 Review Flashcards
Deficit
expenditures exceed revenues in a fiscal year
government spends more than what they made
National Debt
all the money borrowed over the years that still needs to be paid back
Fiscal Policy
government decisions regarding taxing and spending
Which branch is primarily responsible for the national budget?
This branch is also primarily responsible for domestic policy.
Legislative Branch (Congress)
When the government needs to borrow money, the treasury sells bonds. Who can buy these bonds?
- everyone
- citizens
- corporations
- foreign governments
What is the most expensive social services program? Why?
- Medicare
- health insurance for retirees
- uncontrollable expenditure
The federal government initially did not provide social security. When was it introduced?
part of the New Deal programs during the Great Depression
Why is social security expected to face financial problems?
- old program that has not been change
- difficult to change due to its popularity
- cost of living
- money increases to match benefits
- more people live longer and retire
- high unemployment
- people who work put money into the system, people who do not work do not, which leads to less money to pay for social security
What are the three factors of foreign policy?
- diplomatic
- economic
- military
Which branch is primarily responsible for foreign policy?
Executive Branch (the president)
SHORT ANSWER, ONE EXAMPLE
How does the president shape foreign policy?
- chief diplomat (diplomatic relations)
- negotiate with other countries
- appoint and receive ambassadors
- commander in chief (military relations)
- through treaties or executive agreements
- impose tariffs
SHORT ANSWER, ONE EXAMPLE
How does Congress shape foreign policy?
- authority over foreign and military policy
- declare war
- raise and organize armed forces
- establish funds
- vote on foreign aid
- ratify treaties (Senate)
Who is on the United Nation’s (UN) security council? What do they do?
- 15 members
- 5 permanent seats - the Allies in WWII (USA, UK, Russia, China, France)
- 10 seats rotate every two years
- decide how to intervene with country’s actions (e.g. authorize military force, sanction country)
- orders only work if other countries want to obey
Regional Organizations
consists of several nations bound by a treaty
What are examples of regional organizations?
- the North Atlantic Treaty Organization (NATO)
- military alliance between its member nations
- the European Union
- transnational government composed of European Nations
- the Warsaw Pact
SHORT ANSWER
Containment
policy that emerged prevent the spread of communism and Soviet influence
SHORT ANSWER
How was containment put into effect?
Example of containment.
- trade embargo in Cuba
- involvement in Vietnam War
- involvement in Korean War
Détente
ease tensions between countries (e.g. USA & USSR, USA & China)
When was the policy of détente first put into effect?
began after the Vietnam War
Economic Sanctions
- tool to threaten other countries to do what the USA wants
- e.g. tariffs, restrictions on trade (sanctions, total trade embargo)
Textbook: non-military penalties imposed on a foreign government in an attempt to modify its behavior
Why are economic sanctions sometimes unsuccessful?
need strong international support for them to work, but foreign governments typically do not
What are examples of foreign aid?
- money
- products
- weapons
- services
Is foreign aid currently popular?
no!!!!
EXTRA CREDIT
After WWII, what did the USA come out as? Who did the USA ally with?
- world power
- most of Western Europe
EXTRA CREDIT
What were the rival alliances during the Cold War? What countries did each alliance include? Do these alliances still exist?
- NATO
- USA, Canada, Western European countries (Iceland, Norway, UK, Denmark, Netherlands, West Germany, Belgium, Luxembourg, France, Andorra, Spain, Portugal, Monacco, Italy, Greece, Turkey)
- yes
- Warsaw Pact in 1955
- USSR, Poland, East Germany, Czechoslovakia, Hungary, Romania, Bulgaria, Albania (Withdrew)
- no, dissolved in 1991
EXTRA CREDIT
Which countries are founding NATO members? What are the other countries that make up NATO’s current members?
- Canada, USA, Iceland, UK, Norway, Denmark, Netherlands, Belgium, Luxembourg, France, Italy, Portugal
- Sweden, Switzerland, Estonia, Latvia, Lithuania, Poland, Germany, Czech Republic, Slovakia, Hungary, Romania, Croatia, Solvenia, Montenegro, Bulgaria, Greece, Turkey, Spain
EXTRA CREDIT
The United Nation (UN) is the best known international organization. When and why was it created? What does it do?
- created after end of WWII (in 1945) to create global unity, USA wanted to be front and center
- almost every country sends a representative to discuss global issues
